The Economic Problems of the Euro

The Economic Problems of the Euro

In the past few years there have been massive amounts of news about the effects the Euro is having on Europe. Some of the news has been about the negative effects of the Euro. Like most good things, there is always something negative that comes along with the benefits. The Euro has been extremely influential in uniting parts of Europe. The main reason the Euro was created was because most of the nations of the European Union agreed that they needed to form a currency to compete, and eventually, dominate the American Dollar. Although the Euro has many benefits to the EU, the problems of the Euro are something that can not be overlooked.

When someone is faced with a problem, it is always the best move to look at the roots of the problem in order to fix whatever is wrong. With this in mind, for us to fully understand the economic problems of the Euro, we must first observe the history of European conflict and the influence of the European Union (EU). The European Union is a group of twenty-five nations that are known as member states. The nations involved in the use of the Euro are: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain. A very strong bond, known as a currency union, was formed when these twelve nations united to create the Euro. (www.wikipedia.org)

Although it might seem that these nations have great relations with one another, the history of European conflict tells a different story. For decades, the nations of Europe have argued, disagreed, and have even fought wars over differing views of certain issues. They have also had differences over varying